JSE:STXIND Industrial Index Showing Some StrengthThe JSE Industrial Index went through a distribution trading range and together with the overall market started to markdown. However, relative to the Top 40 the Industrial Index is showing strength. However, it is probably not time to get too excited as this is likely to only be a pullback and test of the trading range that was broken. In the short term, this could take us back to between 6500 and 7000. This is the sector to look for some stocks that are benefiting from the current market conditions to go long for shorter-term trades.
STXIND
JSE:STXIND Industrial Index Breaking StructureThe JSE Industrial Index has broken below the lows of the distribution trading range. Some support could be found at 5500 but after a backup to the trading range, the markdown should begin in earnest. The Industrial Index is stronger than the Top 40 index and the decline in this sector is slower than the rest of the stocks.
JSE:STXIND Industrial Index MarkdownFollowing the distribution of the industrial index (See posts below) on the JSE after last week we are now starting the markdown. Volatility has increased and volume has declined which indicates no buying interest. A test of the bottom of the trading range should now take place and we can then look for the signs of a break below the trading range to start phase E.
JSE:STXIND: JSE Industrial Stocks DistributionUpdating the previous post at the start of 2020 (see below) has not changed my evaluation that the JSE Industrial Stocks are being distributed. The relative strength to the Top 40 index is declining an we have seen some signs of weakness (SOW) and inability to rally. Will be watching the start of 2020 for the start of the markdown.
JSE:STXIND JSE Industrial Stocks Being distributedUsing the STXIND as a proxy for the industrial index to get an indication of volume it looks like the industrial stocks on the JSE are being distributed. We have seen an upthrust and sign of weakness (SOW) with increased volume on the declines and no interest in the increases. Price has held below the 200 SMA and Yearly Pivot Point. We are now looking for a break of the trading range to see the start of the markdown.